Pernod Flags U.S. Challenges, Expects Improvement Looking Ahead
August 28, 2025Pernod Ricard posted sales down 3% to €11 billion ($12.8b) on an organic basis for the 12 months through June, as tough conditions in the U.S. and China weighed down results. Profit from recurring operations slipped 0.8% to €3 billion ($3.5b) organically, while both profits and sales fell about 5% on a reported basis, impacted by currency exchange. The spirits giant says it expects improving sales trends heading into 2026, although inflation, tariff uncertainty, and weakened consumer confidence continue to present challenges.
In the U.S., representing just under 20% of group sales, Pernod saw a 6% decline in the year through June, “impacted by subdued consumer confidence and economic moderation.” Still, it’s noting better trends recently, with underlying sell-out volume and value improving, especially on brands like Jameson, Absolut, and Kahlúa. According to the company, Jameson returned to underlying sell-out growth in the three months through June, showing marked improvement over prior months.
Pernod added that it’s focused on market execution in the U.S., taking a fresh look at its route to market and commercial strategy. But the company added that uncertainty regarding tariffs continues to impact distributor inventories. In the calendar year-to-date through July, top brands Jameson and Absolut have been relatively resilient in control states, down 1% and 2% by volume respectively, while Kahlúa has shown solid growth, and strong performances have been registered by Absolut, Malibu, and Jameson RTDs.
Pernod says it plans to further leverage the RTD category looking ahead, aiming to triple its RTD footprint in the U.S. over the next three years. Among its upcoming launches is a new line of Malibu RTDs made with Dole pineapple juice hitting shelves early next year.
The company expects its new fiscal year to be “a transition year with improving trends in organic net sales, skewed toward H2. A decline in Q1 is expected, with distributor inventory adjustment in the U.S. and continued soft consumer demand and inventory adjustment in China.”
It’s also continuing to streamline its business, having booked savings of €900 million ($1.1b) over the past three years, with initiatives including divestitures of its 10-million-case global wine business and its 23-million-case Imperial Blue whisky brand in India. Pernod says it’s aiming for a further €1 billion ($1.2b) in efficiencies over the next three years, but will continue to invest strongly behind its brands with a 16% A&P ratio and improving returns on investment.—Daniel Marsteller
| Pernod Ricard—Key Spirits in the U.S. | ||||||
| Brand | Origin/Type | Total 2024 U.S. Volume1 |
Control States Volume Growth 2025 YTD2 |
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|---|---|---|---|---|---|---|
| Jameson | Irish Whiskey | 3,694 | -1.0% | |||
| Absolut | Imported Vodka | 2,678 | -2.0% | |||
| Malibu | Imported Rum | 2,300 | -8.7% | |||
| Kahlùa | Imported Liqueur | 1,006 | 4.2% | |||
| Absolut RTD/RTS | Pre-Mixed Cocktail | 813 | 16.6% | |||
| Skrewball | American Whiskey | 485 | -9.8% | |||
| Malibu RTD/RTS | Pre-Mixed Cocktail | 444 | 6.7% | |||
| The Glenlivet | Single Malt Scotch | 401 | -7.2% | |||
| Beefeater | Imported Gin | 371 | -2.7% | |||
| Olmeca Altos | Tequila | 295 | 2.5% | |||
| Chivas Regal | Blended Scotch | 184 | -5.6% | |||
| Jefferson’s | American Whiskey | 144 | -12.1% | |||
| Jameson RTDs | Pre-Mixed Cocktail | 142 | 37.0% | |||
| Martell | Cognac | 137 | 5.7% | |||
| Del Maguey | Mezcal | 88 | 2.1% | |||
| TX | American Whiskey | 69 | 4.4% | |||
| Total Key Brands3 | 13,251 | -1.9% | ||||
| 1 Thousands of 9-liter case depletions. 2 Year-to-date July. 3 Addition of columns may not agree due to rounding. Source: NABCA and IMPACT DATABANK © 2025 |
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